CCPA’s Next Wave: Maine and Nevada Follow in California’s Privacy Footsteps

July 24, 2019

Following the enactment of the European Union’s General Data Protection Regulation (GDPR) in 2018 and California’s ratification of the California Consumer Privacy Act (CCPA), many states have begun to acknowledge the growing importance of businesses’ duty in protecting consumer data and have proposed or passed consumer privacy statutes.

Maine and Nevada have recently both passed legislation comparable to CCPA that governs what online businesses operating in their state may do with their customers’ personal information. Various other states, including New York, New Jersey, Louisiana, Hawaii, and Illinois, are following this trend and have proposed similar consumer privacy legislation.

Nevada

An Act Relating to Internet Privacy (SB 220)

In May 2019, Nevada enacted an amendment titled SB 220 to its online privacy law. The amended law, which goes into effect on October 1, 2019, will apply to any operator of online services within or outside Nevada that collects or maintains personal data from Nevada residents. The new privacy law will require such businesses to offer consumers the right to opt-out of the sale of their personal information.

Compared to the CCPA, Nevada’s online privacy law is somewhat less stringent. The new law requires that the operator respond to a consumer’s “verified request” not to sell the information within 60 days, with an extension of up to an additional 30 days. Businesses found in violation of the Nevada’s new law may face civil action by the Nevada Attorney General or penalties of up to $5,000 for each violation.

Maine

 An Act to Protect the Privacy of Online Consumer Information (LD 946)

Maine’s act titled LD 946 has quickly become known as one of the nation’s strictest internet privacy laws ever enacted. Maine’s act will go into effect on July 1, 2020, and will apply to customers of broadband internet access service that are physically located/billed for service received in Maine. The act will effectively bar companies from using, selling, or distributing customers’ data without their affirmative consent.

In contrast to both California and Nevada, Maine will force internet service providers to obtain express consent from customers to sell their data and will prohibit such businesses from making the “sale of customer data” a part of mandatory terms of service. The act also prohibits companies from providing a discount to consenting customers.

For willful violations, the Maine Public Utilities Commission may impose an administrative penalty for each violation in an amount that does not exceed $5,000 or .24% (whichever is lower) of the annual gross revenue the provider received from sales in Maine. Each day a business violates the act constitutes a separate offense.

Businesses operating online in Nevada or Maine should discuss the privacy laws with their insurance broker to ensure compliance. If you operate an online business, it is imperative you speak with your insurance broker to discuss the emerging privacy laws in all states and how the changes in the law may affect your cyber policy.

Download CCPA’s Next Wave: Maine and Nevada Follow in California’s Privacy Footsteps here.


Britt Eilhardt Britt Eilhardt is a Senior Vice President, Cyber Claims Specialist in Beecher Carlson’s Executive Liability Practice in New York. She is dedicated to working with clients in navigating cyber claims from breach to resolution, swiftly connecting clients with vendors in the event of a breach, reviewing and drafting cyber policy forms and market enhancements, and strategizing with clients on coverage concerns. Britt is an attorney who previously litigated insurance coverage matters in state and federal courts. She is a member of the New York and New Jersey State Bars. She can be contacted at beilhardt@beechercarlson.com.
Vivian Chen Vivian Chen is a Legal Intern in Beecher Carlson’s Executive Liability Practice in New York. She is currently a rising third-year student at Cardozo Law School. Vivian has a Bachelor of Science from American University in Business Administration with a Minor in Law & Society. Previously, Vivian interned at the New York State Department of Financial Services in the Property Bureau where she researched legal issues relating to the Department’s authority to regulate insurance products and services. Prior to law school, she also worked at Starr Companies where she obtained and managed licenses for all domestic producers and insurance agencies. Vivian can be reached at vchen@beechercarlson.com.

 

This article is intended for informational purposes only. It is not a guarantee of coverage and should not be used as a substitute for an individualized assessment of one’s need for insurance or alternative risk services, nor should it be relied upon as legal advice, which should only be rendered by a competent attorney familiar with the facts and circumstances of a particular matter. Copyright Beecher Carlson Insurance Services, LLC. All Rights Reserved.